Although Airbnb is worth more than any current hotel chain at $25 billion, hotels are not too frightened by the threat it poses for a number of reasons, according new research from Morgan Stanley. One reason is that the hotel industry remains strong in RevPAR and occupancy rates, with years of growth ahead. In the United States and Europe, rates are expected to rise 67.6 percent for 2015, 68.6 percent for 2016, and 69.1 percent in 2017.
Additionally, Airbnb is not after business travelers. Research showed that only 7 percent of Airbnb users booked one-night stays, while overnight guests make up 25 percent of hotels’ business.
Another reason why hotels are not afraid of Airbnb just yet is that the company lacks awareness. Only 12 percent of those surveyed said they have used the home rental site, and among those who have never tried it, 59 percent have never heard of it.
For more on this study, visit Quartz.
